NAS100 - Signs of a reversal
Yesterday (March 16th 2022) the FED announced a 0.25% rate hike, following this news there was a quick selloff in stocks with the NAS100 index down a little over 2% within 30 mins of the release, but a sharp rebound allowed NAS100 to finish the day up over 4%.
Although we have seen some decent gains this week we are still below the trend-line resistance and are yet to see confirmation that the trend has reversed, although with strong bullish divergence showing on the 4hr chart, a break of the 13850 resistance, and now testing the 10 week trend line we are starting to see signs that a reversal could be in play.
If the 13850 level holds as support, I imagine the trend-line will break before the weekly close, and this will provide confirmation of a reversal. If we close below the 13850 resistance level, I will be looking to the 20 and 50 EMAs (4hr) sitting around 13600 for support, if this fails to hold then I think we will move back down to test the lows (12900 - 13100)
Short-term view: Bullish (supports to hold, reversal in play)
Medium-term view: Bullish (new ATH in coming months)
Long-term view: Bearish (stock market crash within the coming year(s))
Although we have seen some decent gains this week we are still below the trend-line resistance and are yet to see confirmation that the trend has reversed, although with strong bullish divergence showing on the 4hr chart, a break of the 13850 resistance, and now testing the 10 week trend line we are starting to see signs that a reversal could be in play.
If the 13850 level holds as support, I imagine the trend-line will break before the weekly close, and this will provide confirmation of a reversal. If we close below the 13850 resistance level, I will be looking to the 20 and 50 EMAs (4hr) sitting around 13600 for support, if this fails to hold then I think we will move back down to test the lows (12900 - 13100)
Short-term view: Bullish (supports to hold, reversal in play)
Medium-term view: Bullish (new ATH in coming months)
Long-term view: Bearish (stock market crash within the coming year(s))
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